Remove fall
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How much is that one additional unit worth?

Berkonomics

Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. A ten percent increase in revenues for a company with 50% gross margin and 5% net profit before the increase would double net profit for the period with that ten percent increase in revenue. And that’s power!

.Net 156
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Recurring revenues: Oil or glue?

Berkonomics

Management undertakes a simple exercise of calculating the increased profitability of shutting down all R&D, sales and subordinate operations, and universally notes with shock the high net profit that results – from shutting down all operations except customer service to recurring customers (as in software support operations.).

Sales 296
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Why You Should Think Twice Before You Send That Intro Email

Both Sides of the Table

And in most cases I would heed Fred Wilson’s advice about the “double opt-in” email for intros – where you ask for permission before green-lighting an unsolicited introductions. At a minimum you’re obligating them to ignore the email and feel like an arse for not responding to your introduction.

Email 359
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How big is your ocean? A lesson in TAM, SAM & SOM

Berkonomics

You, the lonely fisherman, must weave a net to catch your fish. Should your net be large and bulky, requiring more effort and expense to weave? Or should it be small and delicate, to catch those fish that would otherwise fall through the net? TAM, SAM & SOM? The post How big is your ocean?

.Net 156
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The power of just ONE more unit.

Berkonomics

Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. A ten percent increase in revenues for a company with 50% gross margin and 5% net profit before the increase would double net profit for the period with that ten percent increase in revenue.

.Net 207
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An economics lesson for growing companies

Berkonomics

Email readers, continue here… ] The banks want to maintain their venture relationships and of course, want to use the existing company cash in their bank as collateral for – you guessed it – their loans to the company. And yet, such a loan does rise and fall with need. Ironically, the term is “compensating balances”.

Company 156
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Fish in the giant ocean – not in a shallow creek.

Berkonomics

You, the lonely fisherman, have to weave a net to catch your fish. Should your net be large and bulky, requiring more effort and expense to weave? Or should it be small and delicate, to catch those fish that would otherwise fall through the net? Email readers, continue here…] This lesson is important.

.Net 120